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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters South Korea shifts course on aid to North Korea Mon Oct 26, 2009 1:20am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Jon Herskovitz and Christine Kim SEOUL (Reuters) - South Korea will make a small grant of humanitarian aid to North Korea, ending its suspension of handouts after a series of conciliatory gestures from its destitute rival, an official said on Monday. As well as reaching out to the South, the North has also sent a senior nuclear envoy to the United States for talks that could revive dormant discussions on ending Pyongyang's atomic ambitions in return for massive aid. Officials said they had no intention at present to fully restore aid, once equal to about five percent of the North's annual economy. Analysts said the aid signals to Pyongyang that more could be coming its way if the North continues reaching out to its neighbor on the heavily armed peninsula. South Korea will send an aid package valued at about 4.1 billion won ($3.5 million) that includes 10,000 tonnes of corn and 20 tonnes of powdered milk, a Unification Ministry official told reporters. "This aid will be solely prepared by the Red Cross," the official said. South Korean President Lee Myung-bak, who took office in February 2008, ended years of unconditional handouts to the North and launched a new policy of linking Seoul's largesse to moves the North makes to reduce the security threat it poses to the economically powerful North Asia region. South Korea once sent up to 500,000 tonnes of rice and 300,000 tonnes of fertilizer a year to North Korea, but the aid was halted after Lee took power. The last shipment of rice in 2007 was valued at about $152 million and was a part of an aid package from Seoul of more than $1 billion aimed at keeping relations with its mercurial neighbor on an even keel. CHRONIC FOOD SHORTAGES North Korea, which battles chronic food shortages due to years of a failed agricultural policies and heavy military spending, made a request to restore rice shipments when it held talks with the South this month on additional reunions of families split after the 1950-53 Korean War. The North in recent months ended its boycott of discussions with the Lee government imposed in anger at the end of unconditional handouts after he took office. In a concession to Seoul, it allowed the first reunions since suspending them about two years ago. "We can say the aid is related to the cooperation North Korea has been showing these days, including the family reunions, but at the same time, we cannot attach it to speculation of North-South summit talks," said Kim Seung-hwan, an expert on the North at Myungji University. Officials in Lee's government have held secret talks with the North on a summit, local media reports say. The presidential Blue House says Lee has always left the door open for a summit as long as it is tied to moves by Pyongyang to reduce the security threat it poses. Lee has proposed what he calls a "grand bargain" for the North of major incentives in return for nuclear disarmament. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Fidel Castro's sister: "I worked with CIA in Cuba" The hunt for nuclear clues A hotchpotch set of buildings huddled in fields outside Vienna may seem an unlikely setting for a laboratory which could help uncover illicit nuclear activity. Full Article | Full Coverage Q&A: What may be Iran's strategy? Timeline: Iran's nuclear program More International News Baghdad bombs kill 132, government slams neighbors | Video U.N. inspectors reach Iran's new nuclear site: report | Video Israeli police, Arabs clash near Jerusalem mosque | Video Pakistan forces bomb Taliban in South Waziristan | Video Libya's Gaddafi "sorry" for UK policewoman's death More International News... 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